Member Sign In

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.

If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.

Revenues of $7.18 billion increased 2.5% from the year-ago quarter. However, the figure missed the Zacks Consensus Estimate of $7.25 billion.

The top-line growth was primarily attributable to increasing affiliate and advertising revenues from the Cable Network Programming and Television segments, which was offset by lower theatrical revenues at the Filmed Entertainment segment. Notably, foreign currency had a negative impact of about $110 million on revenue growth.

On the basis of components, affiliate revenues (48.7% of total revenues) increased 8% from the year-ago quarter to about $3.5 billion. Advertising revenues (24.7%) increased 9.2% year over year to about $1.8 billion. Other revenues (1.9%) increased 12.1% to $139 million. However, Content revenues (24.7%) declined 12.3% year over year to about $1.8 billion.

The Cable Network Programming segment gained from higher affiliate and advertising revenue growth, partially offset by increase in programming and contractual expenses. Increase in contractual rates of all domestic cable brands led to a 9% year-over-year increase in domestic affiliate revenues. Domestic advertising revenues increased 7% year over year primarily due to higher pricing at Fox News.

However, international affiliate revenues declined 1% due to unfavorable impact of a stronger U.S. dollar, which was offset by local currency growth at FNG International and STAR. International advertising revenues decreased 8% due to unfavorable impact of a stronger U.S. dollar and “lower local currency advertising revenue at FNG International more than offset local currency advertising growth at STAR.”

Filmed Entertainment revenues declined due to lower theatrical revenues from a “lower volume and mix of films released” in first-quarter fiscal 2019, which was offset by higher SVOD revenues.

The Television segment gained from higher advertising revenues and retransmission consent revenues. Advertising revenues increased 22% year over year to $799 million due to increased number of sports broadcast and higher political advertising revenues generated from the mid-term U.S. elections. Moreover, Retransmission consent revenues increased 19% year over year due to increase in contractual rate. This was offset by increase in sports programming costs by 17%.

The company’s total segment operating income before depreciation and amortization (OIBDA) came in at $1.87 billion, up 4.6% year over year on the back of higher contributions of the Television, Filmed Entertainment and Cable Network Programming segments.

As a result, OIBDA margin of 26.1% expanded 50 basis points (bps) on a year-over-year basis.

OIBDA at Cable Network Programming rose 2% to $1.54 billion on higher affiliate and advertising revenues. The increase was partially offset by 5% rise in expenses. Higher programming costs of FIFA World Cup at both FS1 and FOX Networks Group International and contractual increases at the Regional Sports Networks (RSNs) contributed increase in expenses.

OIBDA contribution from domestic market rose 6% year over year due to increase in contributions from FOX News and RSNs. OIBDA contribution from International cable channels declined 24% year over year due to unfavorable impact of a stronger U.S. dollar.

Filmed Entertainment’s OIBDA increased to $277 million up 8% from the year-ago quarter. The increase was due to higher contribution from the “television production studio led by higher SVOD licensing of animated product.”

Cash flow from operations was $580 million in the quarter compared with $748 million in the year ago quarter.

Recent Announcements

Disney’s (DIS - Free Report) offer of $71.3 billion for Twentieth Century Fox Film and Television studios and certain assets of the cable and international television businesses were recently approved by the European Commission on Nov 6. However, Disney had to divest channels like History and Lifetime in Europe to avoid competition concerns, per Reuters.

Prior to this, Disney received the approval of the United States Justice Department on Jun 27.

Moreover, Twenty-First Century Fox announced that on Oct 9 it sold its Sky stake (39%) to Comcast (CMCSA - Free Report) for total proceeds of $15.1 billion.

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25.32% per year. These returns cover a period from January 1, 1988 through November 5, 2018. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

Visit performance for information about the performance numbers displayed above.

We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms and Conditions of Service.